2026-27 Federal Budget: What It Means for Your Business
In this video, the Quantum House team walks through the 2026-27 Federal Budget, which the Treasurer handed down on 12 May 2026. We explain what the proposed measures mean for small and medium-sized businesses, investors and individuals. In particular, we focus on the changes most likely to affect your tax position and your planning for the years ahead.
Key measures covered in the Federal Budget video
- Capital gains: the 50% CGT discount would be replaced with cost base indexation from 1 July 2027. A 30% minimum tax on realised gains would also apply.
- Trusts: a minimum 30% tax on discretionary trusts from 1 July 2028, with expanded rollover relief.
- Property: negative gearing on residential property limited to new builds from 1 July 2027, while existing arrangements are grandfathered.
- Small business: the $20,000 instant asset write-off made permanent, and a permanent two-year loss carry back for companies.
- Innovation: larger R&D Tax Incentive offsets from 1 July 2028, including a higher refundable offset turnover threshold.
- Administration: optional monthly PAYG reporting and instalments for small and medium businesses from 1 July 2027.
What to do next
As the Federal Budget video explains, most of these 2026-27 measures are proposals and still need to pass Parliament, so the detail may change. Even so, the start dates give business owners and trustees time to review their structures now. For example, a review of your trust or property holdings today can avoid a rushed decision later. Where it helps, we can also model the likely effect on your own figures before the measures start.
If you prefer a written summary to the Federal Budget video, read our 2026-27 Federal Budget highlights. The government’s own Budget papers are available at budget.gov.au. To discuss how the Budget affects your business, speak with our tax accountants in Sydney or contact our team.